South Dakota Administrative Rules
Title 64 - REVENUE
Article 64:01 - Administration
Chapter 64:01:01 - Administration of department
Section 64:01:01:34 - Qualification process and requirements for direct payment permit holders
Current through Register Vol. 50, page 114, March 25, 2024
An applicant for a direct payment permit shall meet the following minimum requirements:
(1) Demonstrate the applicant's ability to comply with the department's sales and use tax laws and reporting and payment requirements. The applicant must provide a description of the accounting system used by the applicant and demonstrate that the accounting system reflects the proper amount of tax due;
(2) Establish a business purpose for seeking a direct payment permit and must demonstrate that direct payment benefits tax compliance. For example, the utilization of direct payment authority shall accomplish one or more of the following:
(3) Has a volume threshold of annual purchases of tangible personal property, products transferred electronically, and services of at least $3 million, which are subject to sales and use taxes;
(4) File and pay or agree to file and pay monthly sales and use tax returns;
(5) File and pay or agree to file and pay by electronic means; and
(6) Agree that its name may be published as a direct payment permit holder on the department's website and in any other related publication, and may be disclosed as a direct payment permit holder in any other manner for tax administration purposes.
The secretary shall review each direct payment permit application. When the department approves the issuance of a direct payment permit, the department shall assign the business a direct payment permit and send the business a direct payment permit. The permit applies only to the business to which it is issued and may not be used by a subsidiary or an affiliate of the business. If a business that has a direct payment permit restructures its business into a new business entity, the new entity must apply for a permit of its own.
General Authority: SDCL 10-46-67.
Law Implemented: SDCL 10-46-67.